Because buyer demand for houses greatly outstrips sellers’ supply at the moment, it might seem like the perfect time to buy a home is just whenever you find one that’s available and not under contract to anybody else.
Finding a home is a stressful endeavor in general, but especially right now– there’s so much competition for virtually every home on the market!
However, there are a few strategies you can employ in order to make the most successful home purchase for your individual needs. Spoiler alert: it involves paying attention to the time of year in which you conduct your search.
Does time of year affect home value?
The effect that seasons have on the home market greatly depends on your location. For instance, warmer climates might experience an upsurge in home sales during the winter months.
On the flip side, colder climates might experience a slowdown in sales during the winter– it’s no fun to tour houses in a blizzard, after all!
Even beyond the obvious climate-related considerations, the answer is yes: the time of year that you’re looking to make a purchase can have a notable impact on things like sale price, inventory, and mortgage rates.
What time of year are mortgage rates lowest?
Mortgage rates are determined by a wide variety of factors, which means that they can be difficult to predict. For example, something like an increase in federal interest rates can indirectly affect mortgage rates.
However, there’s typically a trend throughout the year when it comes to mortgage rates, and it makes sense even if you’re not well-versed on the specifics of the industry.
The time of year when mortgage rates are the lowest, historically, is December. That’s because December tends to be a busy month due to the holidays– not leaving people with a lot of time to deal with the process of selling or buying a home.
Although inventory might also be lower during December for the same reason, if you’re looking to get a little extra break on your interest rates, taking the time to search for a home during the month of December might really pay off!
What time of year is housing inventory highest?
Unfortunately, low mortgage rates coincide with what tends to be a lower inventory during the month of December. So is there a month when inventory is highest?
In a seller’s market, inventory is key, since there are a lot more people looking to purchase homes than there are available homes for purchase.
Fortunately for buyers, inventory tends to be highest during the month of January. This isn’t a hard-and-fast rule, but it does seem to be a historic trend. In some areas, this might be a result of the cold-weather slowdown in home sales– so it might be worth your while to brave the storm!
What’s the best time of year to buy a house?
The best time of year to buy a house is typically during the late fall to early winter, for a multitude of reasons.
“Peak season” for selling tends to happen during the spring, which means that there’s an increase in home inventory but also an increase in mortgage rates. As the year progresses, interest rates drop until they reach their ultimate low in December.
Of course, if you spot the perfect house for the perfect price, you shouldn’t wait and hope it’s still available in December! Working with a qualified real estate agent can help you find a home that’s just right for you, at any time of year.
To get started on your search, send us a message today!